Whereas the main goal of manufacturer brands and own labels is to cut prices, the Catalan olive oil/nuts/dried fruits producer Grupo Borges prefers "not to follow that route, but to bank on global expansion". This was one conclusion from today's Matins ESADE session titled"Outlook for the agri-food sector".
Antoni Pont, Honorary President of Grupo Borges, announced that the group plans to enter the BRIC countries (Brazil, Russia, India and China), as he firmly believes "the future lies in the emerging markets". He also sees the opening of borders as an irreversible trend and "we have to prepare for that", he added.
Mr Pont expressed concern over the current situation in the agrifood sector. As he explained, “The growing importance of hypermarkets, supermarkets, discount stores, etc. (hypermarkets 10%, supermarkets 73%, discount stores 17% in size, and 29, 59 and 12 in value ), has led to an increase in Distributor Brand volume, which is already at around 40% (12 years ago this figure was 22%) and there are sectors which exceeded 70% in terms of DD". For the Honorary Chairman of the Borges Group, these figures are negative for farmers and he fears that there will be a ‘certain disappearance of farming culture’ as a result.
Forecasts show that by the year 2050 world population will have rocketed by 2.7 billion, so "agricultural production will have to double", vouched the Honorary President of Grupo Borges. To achieve this, it is necessary to distribute more products, foster innovation, reach malnourished populations and improve healthcare levels.
Own-label brands
Antoni Pont was critical of the future of own labels in the Spanish market and stressed that "we are suffering from an own-label price war". On that note, he underlined "the importance of investing in production and advertising, rather than prioritising the price". Nevertheless, "the cleverest bidder will no longer be the one who has invested in innovation, but in productivity and at a lower price, at the expense of quality and confidence - cornerstones to building customer loyalty", he explained.
That said, the Honorary President of Grupo Borges said his group does not envisage entering the distribution industry, although he did recognise the significance of adapting to consumer tastes and demand across the world.
Brand Spain
Antoni Pont drew attention to "leading momentum brands" such as Ferrán Adrià, Miquel Fuster and Barça "being influential" in the promotion of Brand Spain abroad. Emphasis must also be given to the 'Made in/by Spain' concept, which "still has much ground to cover, although we are on the right track to some major conquests", he highlighted.
The authorities and brands themselves are highly sensitive to positioning Spanish brands in foreign consumer markets. On this matter, Antoni Pont said, "we are making headway, but whatever the investment, it's still too little". Likewise, he referred to Spain's presidency of the EU as an "opportunity" to single out leading Spanish brands as international benchmarks.
Programme:
Antoni Pont, Honorary President of Grupo Borges, will feature this new session of Matins ESADE titled "Agrifood sector perspectives".
Welcome and Closing: Xavier Sanchez (Lic&MBA 97), Director of ESADE Alumni
Introduction and presentation: Joan Majó, President of Cercle per al Coneixement
Conference: Antoni Pont, Honorary President of Grupo Borges
Discussion:
Moderated by Jordi Goula, Economics Editor at La Vanguardia
Antoni Pont
Lecturer/Business Manager, School of Higher Mercantile Studies of Barcelona. Degree in Business Management, IESE. Permanent Academician of the Spanish Royal Academy of Economic and Financial Sciences. Member of the Mediterranean Council of the Association for Management Progress (APD). Founder and chairman of the Gresol Business Foundation. Founder and honorary chairman of the International Nut and Dried Fruit Council (INC). Honorary chairman of the Borges Group, a family-owned oil, nut and farming business founded in the 19th century. Now in its fourth generation, Borges’s annual sales total 700 million euros, of which 65% is derived from its exports to 103 different countries. It has subsidiaries in six countries.
Spanish Gold Medal for Merit in Work. Recognition of the Civil Order of Agricultural Merit. Catalan Medal for Merit in Agriculture. Cross of Saint Jordi, 2006. Golden Nut Award, 2007, International Nut and Dried Fruit Council (INC).
